New Delhi: The Delhi High Court has directed the aviation regulator Directorate General of Civil Aviation (DGCA) to proceed with deregistering aircraft leased by Go First in the next five working days.

While this poses a major setback for Go First, it provides relief to its aircraft lessors, who can now retrieve their aircraft following the airline's bankruptcy declaration nearly a year ago.

Notably, the court has ordered the deregistration of all 54 planes involved in the case and has additionally barred Go First from operating these aircraft, as per the report.

At present, the airline faces the risk of losing all 54 of its aircraft, extinguishing any hopes of a revival.

The aircraft lessors, which include Pembroke Aviation, Accipiter Investments Aircraft 2, EOS Aviation, and SMBC Aviation, had moved the Delhi High Court in May 2023 seeking permission to get back their planes.

Initially, the DGCA cited a moratorium as the reason for not releasing the aircraft.

However, in October 2023, the Ministry of Corporate Affairs issued a notification stating that the rules of the Insolvency and Bankruptcy Code would not apply to aircraft-related agreements.

The DGCA later informed the court that this notification should extend to cases similar to Go First's. However, the aviation regulator had been awaiting the court's ruling as the matter remained under deliberation.

Amidt these proceedings, two bids emerged for the acquisition of Go First: one led by Ajay Singh, the chief of SpiceJet, and the other by Sky One headquartered in Sharjah.

Ajay Singh and Busy Bee Airways proposed Rs 1,600 crore for the airline, but the lenders are yet to reach a decision.